a guide to real estate ESG management software
Real estate Environmental, Social and Governance (ESG) reporting is becoming the norm for real estate developers and funds as societal pressure combines with investor pressure from above to nudge the industry towards a Triple Bottom Line position.
As real estate ESG consultants annual reporting is an obligatory piece of the puzzle, although it should be seen as a way to summarize and review the work done, rather than it becoming the focus of the work - a subtle but important difference!
Much of ESG is now about producing quality data and management of that data is fundamental, no longer can a spreadsheet do this job for us effectively, especially not for real estate portfolios with multiple, fully operational buildings. By setting up the necessary software early on in the ESG journey, a real estate developer sets themselves up for success in properly capturing, managing, and eventually disclosing ESG data.
ESG software helps us to track, visualize and monitor progress in real time throughout the year and then to transparently communicate to customers and investors the sustainability work delivered at the end of the year too. This process of collecting and analyzing data on an ongoing basis ensures alignment with the appropriate policies and ESG frameworks.
Depending on a real estate developer’s specific requirements, it can be difficult to find one single piece of ESG software that does everything we need, so here is a review of the major players right now.
Greenstone - ESG
Greenstone is a sustainability reporting software that enables organizations to more easily manage their ESG data and ESG reports. It’s primarily about data collection and data management, allowing the ESG team or external ESG Consultants to focus more on reporting, analysis and decision-making. Greenstone’s software and support services include modules concerning the environment, frameworks, and health and safety.
The Greenstone Environment module helps process environmental data, track consumption and carbon emissions, and manage and communicate this data.
The Greenstone Frameworks module ensures that clients meet the requirements of various reporting frameworks such as CDP, SASB, GRI Standards, TCFD, UNGC, and the UN’s Sustainable Development Goals.
The Greenstone Health and Safety module helps organizations to collect and analyze incident data and manage reporting (Greenstone).
https://www.greenstoneplus.com/
Sustain.Life – Environment
Sustain.Life focuses specifically on ways to track, reduce, and manage carbon emissions and footprint. Additionally, the platform aligns this process with current certifications and standards to prepare for third-party assessments. The software aims to simplify the collection and management of data in one place, facilitating collaboration in the process.
Sustain.Life first aids in the measurement of greenhouse gas emissions, then provides step-by-step guides for emission reduction strategies, and finally provides ways to offset unavoidable emissions. The carbon footprint is calculated through Sustain.Life’s carbon calculator using scope 1, 2, and 3 emissions, meaning it considers all levels of a business’s emission behaviors.
Once the footprint is calculated, the software provides a sustainability plan based on the organizations budget, time, and climate impact. Finally, there are offset opportunities provided on the platform, allowing users to offset emissions from building users on an automatic monthly basis (“Sustainability”).
Brightest - Social
Brightest, another big player in ESG, Social Impact and Sustainability software, aims to increase efficiency in collecting, managing, and reporting data. Its particular USP however is around the social impact component, at least for now.
Brightest helps organizations collect data on environmental accounting assets, supply chain, energy and resources, and employees, teams and departments through stakeholder surveys, utility and invoice analyses, and life cycle analyses.
Once collected, data can be transferred to the Brightest ESG and sustainability dashboard. There, emission targets are tracked, carbon accounting is regulated, social impact and community characteristics are noted, and action plans are recommended based on the available data. As data accumulates the software can then start to aid further with reporting and disclosure.
Workiva - Governance
Workiva’s platform enables a simpler ESG reporting process through data management, the provision of reporting templates, and a single location for policy management. This software helps answer the ESG reporting questions of: who needs to be involved, what data should be included, and how can it be consolidated efficiently?
Workiva provides a platform to store data, create custom data sets and calculations, and format that data for reporting. Much of this process is automated. In addition, the platform allows for easier collaboration through simplified task management and progress tracking.
A master index of policies makes it easy to track and manage content for policies, standards, and other ESG guidelines. This allows ESG teams to keep all relevant ESG policies and documents in a single location.
https://www.workiva.com/solutions/esg-reporting
Measurabl – Real Estate ESG
Measurabl is arguably the most widely recognized ESG data management software in commercial real estate right now. The tool was designed specifically for real estate and is entirely data driven. It automates and consolidates much of the ESG processes, including ways to set targets, track performance, use benchmarks, and create reports.
This platform helps measure data such as electricity, water, fuel, and waste usage as well as tracking sustainability targets. In addition, it helps users manage social and governance documents, and keep track of green building certifications and annual reporting frameworks.
Sources
Brightest. “Simplify Social Impact, Sustainability and ESG.” Brightest, https://www.brightest.io/
“ESG Reporting.” Workiva, https://www.workiva.com/solutions/esg-reporting
Greenstone. “Sustainability, Supply Chain and ESG Software Solutions.” Greenstone, https://www.greenstoneplus.com/
“Real Estate ESG.” Measurabl, 12 Apr. 2022, https://www.measurabl.com/
“Sustainability Management Software.” Sustain.Life – Sustainability Management Software, https://www.sustain.life/